ASO or YETI: Which Is the Better Value Stock Right Now?
ASO vs. YETI: Which Stock Is the Better Value Option?
Investors interested in Leisure and Recreation Products stocks are likely familiar with Academy Sports and Outdoors, Inc. (ASO) and Yeti (YETI). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Academy Sports and Outdoors, Inc. and Yeti are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ASO likely has seen a stronger improvement to its earnings outlook than YETI has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASO currently has a forward P/E ratio of 7.61, while YETI has a forward P/E of 37.81. We also note that ASO has a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. YETI currently has a PEG ratio of 2.44.
Another notable valuation metric for ASO is its P/B ratio of 3.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, YETI has a P/B of 19.15.
These metrics, and several others, help ASO earn a Value grade of A, while YETI has been given a Value grade of D.
ASO has seen stronger estimate revision activity and sports more attractive valuation metrics than YETI, so it seems like value investors will conclude that ASO is the superior option right now.
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Academy Sports and Outdoors, Inc. (ASO): Free Stock Analysis Report
YETI Holdings, Inc. (YETI): Free Stock Analysis Report
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